Deal offers three series of warrants, one with discounted strike price
By Susanna Moon
Chicago, April 14 - Nova LifeStyle, Inc. said it entered into a securities purchase agreement with institutional investors for an $8.95 million registered direct placement of shares.
The company will sell 1,320,059 common shares of common stock at a price of $6.78 per share.
The price per share is an 11.95% discount to the company's closing price on April 11.
The company will also issue series A warrants for up to 660,030 shares exercisable at $8.48 per share for 48 months, series B warrants for up to 633,628 shares exercisable at $6.82 per share for six months and series C warrants for up to 310,478 shares exercisable at $8.53 per share for 48 months.
The strike price for the series A warrants is a 10.13% premium to the company's closing price last Friday; the strike price for the series B warrants is a 11.43% discount to that price; and the strike price for the series C warrants is a 10.78% premium to that price.
After the six-month anniversary of the issue of the series C warrants, if a holder of a series B warrant has exercised less than 70% of the series B warrants and the closing sale price of the company's common stock is at or above $9.81 for 10 consecutive trading days, then the company may purchase the remaining series C warrants for $1,000.
Proceeds will be used for general working capital purposes.
FT Global Capital, Inc. is the placement agent.
Nova is a Commerce, Calif.-based company that designs, manufactures and sells modern home furniture.
| Issuer: | Nova Lifestyle Inc.
|
| Issue: | Shares and warrants
|
| Amount: | $8,950,000.02
|
| Shares: | 1,320,059
|
| Price: | $6.78
|
| Warrants: | Series A warrants for up to 660,030 shares, series B warrants for up to 633,628 shares and series C warrants for up to 310,478 shares
|
| Warrant expiration: | 48 months for series A warrants, six months for series B warrants and 48 months for series C warrants
|
| Warrant strike price: | $8.48 per for series A warrants, $6.82 per share for series B warrants and $8.53 per share for series C warrants
|
| Agent: | FT Global Capital, Inc.
|
| Settlement date: | April 17
|
| Stock symbol: | Nasdaq: NVFY
|
| Stock price: | $7.70 at close April 11
|
| Market capitalization: | $125.95 million
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